XRP News Today: Trump Leads Election Race Driving XRP and BTC Higher

US Presidential Election Crucial for XRP

On Wednesday, November 6, the US presidential election results will be in focus. Buyer demand for XRP and the broader market increased on Tuesday, driven by hopes of anti-crypto sentiment ending on Capitol Hill. XRP rose further on Wednesday morning (UTC) as Trump took an early lead in the US presidential election.

Notably, a Trump victory could fuel speculation about the SEC withdrawing its appeal against rulings in the Ripple case. Trump pledged to fire SEC Chair Gary Gensler on day one in office.

A pro-crypto President may force a new SEC Chair to drop its appeal plans. If the SEC withdraws its appeal, the Programmatic Sales of XRP ruling will stand, potentially raising expectations for a US XRP-spot ETF market.

XRP could target the July 2023 high of $0.9327 if Trump wins the US presidential election. Conversely, XRP may drop below $0.45 if Kamala Harris wins.

XRP Price Action

On Tuesday, November 5, XRP advanced by 2.19%, reversing a 0.02% loss from the previous session, closing at $0.5142. XRP tracked the broader crypto market, which gained 2.22%, taking the total market cap of $2.264 trillion.

Impact of Mt. Gox Transfers on BTC

Turning our focus to BTC, investors paid close attention to Mt. Gox activity on Tuesday. Arkham Intelligence broke the news of Mt. Gox moving $2.3 billion in BTC, with $2.2 billion reportedly being moved to cold storage. The move to cold storage suggests no immediate plans for Mt. Gox to return the BTC to its creditors, tilting the supply-demand balance in BTC’s favor.

Mt. Gox collapsed in 2014 when BTC was around $600. Currently, Mt. Gox holds 44,378 BTC, equivalent to $3.10 billion, yet to return to its creditors. The $2.2 billion transfer to cold storage significantly reduces the risk of creditors’ BTC flooding exchanges. BTC is currently sitting at $70,670, potentially a sizeable windfall for creditors who lost their BTC at $600.

US BTC-Spot ETF Market Inflows Signal Bets on a Trump Victory

On Monday, the US BTC-spot ETF market saw total net outflows of $541.1 million in net outflows amid uncertainty about the US election. The US BTC-spot ETF market faced further net outflows on Tuesday as America went to the polls.

According to Farside Investors:

• Fidelity Wise Origin Bitcoin Fund (FBTC) saw net outflows of $68.2 million on Monday. (Previous day: -$169.6 million).
• ARK 21Shares Bitcoin ETF (ARKB) had net outflows of $12.5 million. (PD: -$138.3 million).
• Five of the twelve BTC-spot ETF issuers reported net outflows on Tuesday
• However, Bitwise Bitcoin ETF (BITB) saw net inflows of $19.3 million. (PD: -$79.8 million).

Excluding flow data for iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market had net outflows of $72.6 million.

US Presidential Election Results Boost BTC Demand

Market hopes for a Trump victory in the US presidential election drove BTC demand entering the Wednesday session.

Early results show Trump led Harris with 99 electoral votes versus 27.

Crypto investors view Trump as the preferred candidate for the US presidency. On the campaign trail, Trump pledged to make BTC a strategic US reserve and the US government a BTC HODLER.

A pro-crypto president and a pledge to hold the US government’s 208,109 BTC stockpile, equivalent to $14.84 billion, would significantly reduce oversupply risk.

In July 2024, the US government transferred $2 billion in BTC to two crypto wallets, fueling fear of oversupply impacting BTC demand. Oversupply risk contributed to the BTC slide below $50,000 on August 5, emphasizing the potential significance of Trump’s pledges.

Bitcoin (BTC) Price Action

On Tuesday, November 5, BTC advanced by 2.32%, reversing a 0.97% loss from the previous session, closing at $69,458. BTC extended its gains on Wednesday morning, November 6, rallying 1.78% to $70.697 as early election results showed Trump leading.

A Trump victory could drive BTC toward $80,000, while a Harris win may drag BTC below $50,000.

On Monday, Alliance Bernstein analysts predicted BTC would drop to around $50,000 while projecting BTC to rally to $80-$90k if Trump wins.